Farmings Contribution to the Economy Up

The latest Total Income from Farming (TIFF) figures from Defra show that farming’s total contribution to the economy has risen to £10.3bn, an increase of 20%.

Farming’s growing contribution to the economy is further evidence
that the sector needs to be properly valued by the government post-Brexit,
the NFU says today as new total farming income figures are released.

The latest Total
Income from Farming (TIFF) figures from Defra
show that farming’s total contribution to the economy has risen
to £10.3bn, an increase of 20%.

The figures also show that farming’s profitability has increased,
albeit from a low base, by 41%, to £5.7bn.

NFU
Deputy President Guy Smith said:
“This is positive news for
the farming sector and very clearly demonstrates the significant
contribution agriculture makes to the wider economy.

“As the NFU prepares to submit its consultation response to government
on a future farming policy, these newly released figures provide
further evidence that a new agricultural policy must allow farm
businesses to be productive, profitable and progressive.

“The increased profitability of our sector is particularly good
news, as farmers have experienced a full year of higher commodity
prices due to the devaluation of the pound which occurred after
the EU
referendum.

“It is important to remember that this rise comes after three years
of falling profits and margins, and increased price volatility for
many across the industry. However, the NFU is concerned whether this
performance can be sustained in future years.

“In addition to the effects of the recent wet weather, the cost base
of the industry has been rising. Some farm commodity sectors are also
witnessing falls from the recent historic highs seen in 2017. Milk
price, for example, has fallen nearly 8% in the past three months.

“Lower farm gate prices will feed through to a lower bottom line for
2018 and it would be reckless to draw from these figures that farming
is entering a period of sustained profitability.

“In order to put farmers in the best position to continue producing
food for the nation, this sort of volatility needs to be addressed
in future agricultural policies. The NFU believes that with the right
government policies, Britain’s farmers can continue this impressive
performance.”